| We have audited the accompanying financial statements of Raasi
Enterprises Limited ("the Company"), which comprise the Balance Sheet
as at March 31, 2014, the Statement of Profit and Loss and the Cash
Flow Statement for the year then ended and a summary of significant
accounting policies and other explanatory information. Management's
Responsibility for the Financial Statements
Management is responsible for the preparation of these financial
statements that give a true and fair view of the financial position,
financial performance and cash flows of the Company in accordance with
the Accounting Standards referred to in sub section (3C) of section 211
of Companies Act, 1956. This responsibility includes the design,
implementation and maintenance of internal control relevant to the
preparation and presentation of the financial statements that give a
true and fair view and are free from material misstatement, whether due
to fraud or error.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial
statements based on our audit. We conducted our audit in accordance
with the Standards on Auditing issued by the Institute of Chartered
Accountants of India. Those Standards require that we comply with
ethical requirements and plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the financial statements. The procedures
selected depend on the auditor's judgment, including the assessment of
the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the Company's preparation and
fair presentation of the financial statements in order to design audit
procedures that are appropriate in the circumstances but not for the
purpose of expressing an opinion on the effectiveness of the Company's
internal controls. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of
the accounting estimates made by management, as well as evaluating the
overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion.
Opinion
In our opinion and to the best of our information and according to the
explanations given to us, financial statements give the information
required by the Act in the manner so required and give a true and fair
view in conformity with the accounting principles generally accepted in
India:
a. in the case of the Balance Sheet, of the state of affairs of the
Company as at March 31, 2014;
b. in the case of the Statement of Profit and Loss, of the loss for
the year ended on that date; and
c. in the case of the Cash Flow Statement, of the cash flows for the
year ended on that date.
Emphasis of Matter
We draw attention to the following note to the financial statements:
Note No 18. Regarding the sale of fixed assets, the future plans of the
company based on which the accounts have been drawn on going concern
basis.
Our opinion is not qualified in respect of the above matter.
Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order, 2003 ("the
Order") issued by the Central Government of India in terms of
sub-section (4A) of section 227 of the Act, we give in the Annexure a
statement on the matters specified in paragraphs 4 and 5 of the Order.
2. As required by section 227(3) of the Act, we report that:
a. We have obtained all the information and explanations which to the
best of our knowledge and belief were necessary for the purpose of our
audit;
b. In our opinion proper books of account as required by law have been
kept by the Company so far as it appears from our examination of those
books;
c. The Balance Sheet, the Statement of Profit and Loss, and the Cash
Flow Statement dealt with by this report are in agreement with the
books of account;
d. In our opinion, the Balance Sheet, the Statement of Profit and Loss
and the Cash Flow Statement comply with the Accounting Standards
referred to in subsection (3C) of section 211 of the Companies Act,
1956;
e. On the basis of written representations received from the directors
as on March 31, 2013, and taken on record by the Board of Directors,
none of the directors is disqualified as on March 31, 2013, from being
appointed as a director in terms of clause (g) of sub- section (1) of
section 274 of the Companies Act, 1956.
RE: RAASI ENTERPRISES LIMITED
Referred to in paragraph 3 of our report of even date
i. (a) The company has compiled the fixed assets register showing full
particulars including quantitative details, location and situation of
the fixed assets.
(b) No physical verification of fixed assets was carried out by the
management during the year; hence we are unable to comment on the
discrepancies, if any.
(c) According to the information and explanations given to us, the
company has disposed off substantial part of fixed assets comprising of
Buildings situated at Bimavaram, W.G. District and hence, fundamental
assumption of going concern will not be effected - refer no. 19 notes
on account.
ii. According to the information and explanations given to us, there
are no inventories. Therefore the provisions of Clause 4 (ii) (a), (b)
and (c) of Companies (Auditor's Report) Order, 2003 as amended are not
applicable to the Company.
iii. (a) According to the information and explanations given to us, the
Company has not granted unsecured loans to the parties covered in the
Register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 397.25 lakhs and
year-end balance of such loans was Rs. 142.25 lakhs. However the
maximum amount outstanding in respect of loans were granted earlier
years.
(b) According to the information given to us, the terms and conditions
of such loan is prima facie not prejudicial to the interest of the
Company. Since the loans granted are repayable on demand, question of
overdue amounts does not arise. Therefore commenting under Clause 4
(iii) (c) and (d) of Companies (Auditor's Report) Order, 2003 as
amended does not arise.
(e) According to the information and explanations given to us, the
Company has not taken unsecured loan from the parties covered in
Register maintained under Section 301 of the Companies Act, 1956. The
maximum amount involved during the year was Rs. 499.41 lakhs and year
end balance was Rs. 17.91lakhs. However the maximum amount outstanding
in respect of loans were granted earlier years.
(f) Since the loans taken are repayable on demand, question of overdue
amounts does not arise. Therefore commenting under Clause 4 (iii) (g)
of Companies (Auditor's Report) Order, 2003 as amended does not arise.
iv. In our opinion and according to the information and explanations
given to us there are adequate internal control procedures commensurate
with the size of the Company and the nature of its business with regard
to purchase of fixed assets, sale of goods and services. In our opinion
and according to the information given to us, there is no continuing
failure to correct major weaknesses in the Internal Control System of
the Company.
v. (a) In our opinion and according to the information and
explanations given to us, and based on the representations by the
management, there are no transactions that need to be entered into the
register in pursuance of Section 301 of the Companies Act, 1956.
Accordingly clause (v) (b) of this order is not applicable to the
Company for the current year.
vi. The company has not accepted any deposits from the public.
vii. The Company has no internal audit system in vogue.
viii. In our opinion and according to the information and explanations
given to us, the Central Government has not prescribed the maintenance
of Cost Records under Section 209 (1) (d) of the Companies Act, 1956
for the activities of the Company. Therefore, the provisions of clause
4(viii) of Companies (Auditor's Report) Order, 2003 as amended are not
applicable to the Company.
ix. (a) According to the information and explanations given to us, the
Company is regular in depositing undisputed statutory dues including
Provident Fund, Investor Education and Protection Fund, Employees'
State Insurance, Sales Tax, Wealth Tax, Service Tax, Customs Duty,
Excise Duty, Cess and any other applicable statutory dues with the
appropriate authorities. According to information and explanation given
to us, there are no arrears of statutory dues as at 31st March, 2014
which are outstanding for a period of more than six months from the
date they became payable except an amount of Rs. 0.62 lakhs (Previous
Year Rs. 0.62 lakhs) towards Investor Education and Protection Fund and
an amount Rs. 0.67 lakhs towards Tax Deducted at source.
(b) According to the information and explanations given to us, there
are no dues of Income Tax, Wealth Tax, Sales Tax, Customs Duty, Excise
Duty and Cess which have not been deposited on account of any dispute
except as stated below:
Name of the Nature of dues Amount Forum where
statute (Rs. in lakhs) dispute is
pending
Income Tax Disputed of tax demand 6.80 Commissioner
for the AY - 1998-99 Income Tax
(Appeals),
Hyderabad.
Disputed tax demand 1.78 Commissioner
towards lease income Income Tax
from buildings for the (Appeals),
AY - 2004-05 Hyderabad.
x. The company has no accumulated losses as on 31st March 2014. The
company has not incurred any cash losses in the financial year under
report and in the immediately preceding financial year.
xi. According to the information and explanation given to us, the
company has not defaulted in repayment of dues to financial
institutions and banks.
xii. According to the information and explanations given to us, the
company has not granted any loans and advances on the basis of security
by way of pledge of shares, debentures or other securities.
xiii. The company is not a Chit Fund/Nidhi/Mutual Benefit
Fund/Society. Therefore, the provisions of clause 4(xiv) of Companies
(Auditor's Report) Order, 2003 as amended are not applicable to the
Company.
xiv. The company is not dealing in or trading in shares, securities,
debentures and other investments. Therefore, the provisions of clause
4(xiv) of Companies (Auditor's Report) Order, 2003 as amended are not
applicable to the Company.
xv. In our opinion and according to the information and explanations
given to us during the course of the audit, the company has not given
any guarantee for loans taken by others from bank or financial
institutions.
xvi. In our opinion and according to the information and explanations
given to us, term loans were applied for the purpose for which the
loans were obtained.
xvii. On the basis of an overall examination of the balance sheet of
the company in our opinion and according to information and explanation
given to us, there are no funds raised on short term basis which have
been used for long term investment.
xviii. During the year under report the company has not made any
preferential allotment of shares to parties and companies covered in
the Register maintained under Section 301 of the Companies Act, 1956.
xix. The company has not issued any debentures.
xx. The Company has not raised any money by public issue during the
year.
xxi. In accordance with the information and explanations given to us
and our examination of books and records, no fraud on or by the company
has been noticed or reported during the year.
For M. Bhaskara Rao & Co.,
Chartered Accountants
Firm Registration No.00459S
V. Raghunandan
Place: Hyderabad Partner
Date : 29.05.2014 Membership No.26255 |